08 August 2012 09:08 [Source: ICIS news]
SINGAPORE (ICIS)--Asian acrylonitrile-butadiene-styrene (ABS) prices weakened this week to the low $1,900/tonne (€1,539/tonne) levels as traders liquidated stocks amid lacklustre regional demand, market sources said on Wednesday.
Spot prices were hovering at $2,000/tonne CFR (cost and freight) NE (northeast) ?xml:namespace>
But buying interest abated after end-users accumulated some cargoes, taking out the support on prices.
“Traders have cheaper resins in hand purchased earlier and they can afford to reduce prices a little more to offload them,” said a producer in
A number of traders have stocks purchased previously at under $1,900/tonne, and were contemplating locking in profits and reducing their ABS holdings in view of the uncertain demand in the region.
The Chinese exports sector remained weak into August despite the seasonal pick-up in manufacturing activities in the third quarter. Orders for finished goods from Europe and the
“The export sector is poor this year and many small-to-medium factories in
Domestic demand for ABS in
“The Chinese government will have to step in with some stimulus in order to prop up demand,” the trader said.
With the current demand outlook remaining unclear, traders are expected to reduce inventories further, which could result in further price pressures.
The ongoing debt crisis in Europe and the slowdown in the
ABS is a resin used in the manufacturing of appliances, consumer electronics, office equipment as well as the automotive and construction industry.
($1 = €0.81)
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